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Literally it means a sale on mutually agreed profit, also known as cost plus sales, it is one of the most widely used instruments for short-term financing where the MFI undertakes to supply specific goods or commodities at mutually agreed profit to the client.

A trustee-type finance contract under which one party (MFI) provides the capital for a project and the other party ( Client) provides the labor/Skill. Profit sharing is agreed between the two parties on mutual consent but the losses should be borne by the provider of funds .

Salam means a contract in which advance payment is made for goods to be delivered later on. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract

Utilization

Salam is ideal product for Agricultural Financing, it can also utilize for other business purposes as well.

A pre-delivery financing instrument used to finance projects where commodity is transacted before it comes into existence. It is an order to manufacture and payment of price, unlike Salam, it’s flexible, where price may be paid in advance, or in installments or on delivery of good.

Utilization

Istisna May Utilize for small manufacturing Business, for production use, Micro entrepreneur Development sectors etc.

Ijarah Means Operating lease. It is an arrangement under which the Islamic Micro Finance Institution lease equipments, light Vehicles, Instruments, buildings or other facilities to a client, against an agreed rental.

Diminishing Musharkah is a form of Musharakah where the MFI and his client participate in a joint commercial enterprise or property. This attains the form of undivided ownership of both the financier and the client. Over certain period the equity of financier is purchased by the client

Utilization

This is an ideal product for Housing Finance sector, but also utilize for other ventures as well.

Total Population of South Asia, Central Asia, West Africa and MENA Region & Caucasus are 2.4 Billion , out of them 1.12 Billion are Muslims which are 47.3 %, and shows a big Demand of Islamic Microfinance Products for Financial Inclusion because Muslim are reluctant to move Interest based MF System.

IMF is beneficial for Muslim as well as for Non-Muslims.

According to World bank*, South Asia is home to half the world's poor, where Muslim population is 33.2% of total population, which shows immediate need of Islamic Microfinance there.